York Covers High Insurance Cost

Increase In School System Surpasses Average

YORK — Prescription drugs and nursing home care costs are two of the biggest increases affecting the York County School District's health insurance rates next year.

While national renewal rate increases average around 15 percent, the rates for York are rising more than 20 percent because the school district saw an increase -- from 12 to 21 -- in the number of claims filed in excess of $25,000.

But instead of passing the bulk of that cost increase along to its employees, the School Board plans to shoulder the financial burden to the tune of $475,000.

"The board struggles each year with the rising cost of health care insurance," said School Superintendent Steven Staples. "But it's like an invisible increase because you're putting in more money but you're getting the same service."

At its meeting Monday night, the board voted to award its employee health insurance contracts to Anthem Blue Cross and Blue Shield and the dental contracts to Delta Dental of Virginia. The School Board also voted to continue offering smoker and non-smoker rates.

Anthem had suggested the Preferred Provider Organization health insurance policy be changed to no longer allow employees to have the option of choosing either brand name or prescription drugs. But the school district's health insurance committee nixed the idea of forcing employees to rely totally on generic drugs and instead recommended increasing the employee rates slightly to cover the higher costs.

The committee estimates that about 60 percent of the school district's employees would pay no more than $15 more per month next year for health insurance, depending on their plan.

For example, a non-smoker with an employee-only PPO plan would pay $325 a month next year compared to $280 for this year. A non-smoker with an employee-only HMO plan would pay $237 a month compared to $205.

Dental coverage costs for an employee-only plan with Dental Premier would stay the same at $30 a month, while under the Delta Care the increase would be $1, from $14 to $15.

"I want people to realize how much we put in because it would be a healthy pay raise for our employees if it didn't have to go toward health insurance," said board member Don Felling. "So far, we've been able to keep the pain harmless to our employees. But I don't know if we can keep doing that."

Beverly N. Williams can be reached at 247-4755 or by e-mail at bwilliams@dailypress.com